The Obama administration is engaged in a broad push to make more home loans available to people with weaker credit, an effort that officials say will help power the economic recovery but that skeptics say could open the door to the risky lending that caused the housing crash in the first place.

Confiscate some of your money? Ala Cyprus. But, what we have again, people who KNOW(or should have known) they can’t afford a $300k home getting approved by pressure from the feds and we, the law abiding victims, get stuck paying for someone else’s deliberate screwing up. If you make $12.50/hr, guess what. YOU CAN’T AFFORD THAT $300K HOME! Even though we’re sure you DESERVE it and FEEL entitled to it. Pretty sick of following the rules and doing the right thing only to get hosed on my taxes and everything else while the deadbeats skate. Like I said, law abiding victims.

6
posted on 04/03/2013 6:39:10 AM PDT
by rktman
(BACKGROUND CHECKS? YOU FIRST MR. PRESIDENT!(not that we'd get the truth!))

I can tell you that here in Long Island, houses are now being snapped up very quickly.

I have a colleague who (with his working wife) saved $80,000 to put a down payment of 20% for a house in the Nassau-Suffolk Counties. Mortgage interest rates are at a ridiculously low 3.9%.

Everytime he see’s one house that he likes, it already had an offer which the seller accepted ( with a second backup offer in existence ).

He recently found a house he liked and he and his wife quickly gave an offer which the seller agreed to. Problem, he forgot to sign an agreement. Another buyer offered $10,000 more than his offer which the seller favored.

The other buyer (whose offer was accepted ) got a loan from a bank with only 3% DOWN !!!

“working with banks” means extortion, threats, coersion and all the other veiled threats this SOB can make. He means he wants unqualified loans to unqualified blacks, Mexicans and any other minority affiliated with the Democrat Party.

This has been the policy of the Democrat Party, Fannie and Freddie, Barney Frank and the Government bureaucrats all along. Obama and Acorn spoke about banks not making loans .Then when the mortgages were not paid back Democrats and the MSM blamed “deregulation”.

It used to be that the limit of the house’s mortgage was approx. 2-1/2 your annual gross salary with payments of no more than 1/4 of your monthly takehome pay. All of this made sense. If you couldn’t afford it, you didn’t buy it.

But these numb-nut morons are starting this all over again . . . buy what you can’t afford . . . someone else will pay for it (someone else? you mean the gummint?)

The Obama administration is engaged in a broad push to make more home loans available to people with weaker credit, an effort that officials say will help power the economic recovery but that skeptics say could open the door to the risky lending that caused the housing crash in the first place.

What's the definition of insanity? Doing the same thing over and over again and expecting a different result. The first housing crash happened during a great economy, and it cost us taxpayers billions. Imagine what would happen during a failing oboma economy (oboma - finishing the job his muslim brothers failed to do on 9/11).

Loans to weak credit...I thought that already happened.
Some 5 years ago, a local branch of Citi Financial called me, trying harder than a car dealer to talk me into a home eq loan I didn’t need or want, on my mortgage-free abode. It was totally clear to the agent that my income didn’t justify the loan in any real world, but when he realized it was clear to me as well, he acted personally offended and hung up.
I could swear this sort of fast-and-loose lending was outmoded by now.

22
posted on 04/03/2013 6:50:13 AM PDT
by HomeAtLast
( You're either with the Tea Party, or you're with the EBT Party.)

" Wow, talk about ignorance. The current mess started allll the way back during Clintons term by way of the CRA, Barney Frank and Janet Reno threatening banks to make loans to people who had no chance of paying them back.

Thats right, somehow Barney Frank and Janet Reno forced all the banks to give people terrible loans. Thats exactly what happened. Dont you remember the banks complaining about this on a regular basis? They were saying, Gosh, we sure dont want to give these people loans, but since a Congressman is somehow forcing us to, I guess we might as well turn those into collateralized debt obligations, not reveal the basis of the bond to the bond rating agencies, but threaten to go to another bond rating agency and force Moodys and S&Ps hands so they give AAA ratings to bonds which consisted of mortgages with teaser interest rates that were going to go way up in 2 years and then lead to tons of foreclosures?

Gee, why wasnt Ken Lewis or Lloyd Blankfein complaining about that in 2005, if that were actually true?

Some 5 years ago, a local branch of Citi Financial called me, trying harder than a car dealer to talk me into a home eq loan I didnt need or want

For a number of years, my mail box was flooded by offers from "financial institutions" wanting me to get a home equity loan from them, not too much anymore.

I have a home equity line of credit at my C.U. with a zero balance. They send me blank checks trying to get me to borrow money. It cost nothing to get the credit line, no appraisal costs etc. and nothing to maintain it. It's available to get cash quickly, if I ever need it.

This dumb policy, rooted in the Community Reinvestment Act under the Carter administration, was only a minor contributor to the housing bubble.

The biggest culprit by far was the Federal Reserve. Had the Fed not intervened throughout the early 2000s to keep interest rates artificially low, had the Fed allowed interest rates to rise to reflect the increasing demand for loanable funds, then the higher interest rates would have choked off the bubble.

Disclaimer:
Opinions posted on Free Republic are those of the individual
posters and do not necessarily represent the opinion of Free Republic or its
management. All materials posted herein are protected by copyright law and the
exemption for fair use of copyrighted works.